simulation From the University of Phoenix supply and demand simulation I identified a few microeconomic and macroeconomic principles. Monopoly and Maximizing revenue are two microeconomic concepts. Colander (2010) explains that microeconomics is “the study of individual choice, and how that choice is influenced by economic factors (p. 15)”. Economic factors and the market influence both of them. Macroeconomics, on the other hand, is “the study of the economy as a whole (p. 15)”. Equilibrium and supply
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Microeconomics and the Laws of Supply and Demand The first microeconomic policy that I noticed in this simulation, was the company GoodLife's decision to try and reduce their rental vacancy rate while still increasing the revenue. This is a microeconomic concept because it focuses solely on the company's revenue and profit and does not take a look at how this will affect the bigger picture. By decreasing the price of rent at their apartments, they are increasing the quantity of rooms demanded
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Exercise 1 Solution Chapter 1 Economics: Foundations and Models 1.1 Three Key Economic Ideas 1) Which of the following statements is true about scarcity? A) Scarcity refers to the situation in which unlimited wants exceed limited resources. B) Scarcity is not a problem for the wealthy. C) Scarcity is only a problem when a country has too large a population. D) Scarcity arises when there is a wide disparity in income distribution. Answer: A Comment: Recurring
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The simulation concerns a supply and demand for two-bedroom rental apartments in Atlantis. There are several factors that affect demand and supply of the two-bedroom apartments leading to shift in both the demand and supply curves. One of the microeconomic principle in this simulation is the law of increasing opportunity cost because it states that production of an additional unit of a product increases the cost of production. It therefore means that increasing the number of two-bedroom apartments
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Atlantis area, Goodlife Management maintained a monopoly in this market. Many factors cause changes to the supply and demand of a product or service. Companies need to make adjustments to pricing, supply, and demand to reach the equilibrium. Microeconomics With a vacancy rate of 28% Goodlife Management made the decision to lower the rental rates decreasing the vacancy rate down to 5%. The decision to lower the rental rates also enabled Goodlife Management to increase revenue. This product
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similuation from both macroeconomics and microeconomics. The macroeconomics principals and concepts that were illustrated in the simulation were the city councels ntefereance with the housing market and the fact that the councle put a price ceileing on the housing rent. The city councle started regulating the housing prices and put a ceiling of $1550 which is a govenment interefierence and regulation thus making it a macroecnomics concept. There were quiet a few different microeconomics concepts that were
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which is located in Atlantis and how various economic factors impact it. The supply and demand concept is very important and critical in microeconomics as well as macroeconomics. The microeconomics concept is classified within the changes of the equilibrium and the supply and demand concept in which the apartment community operates within. While in the macroeconomics concept it is classified as price ceilings and elasticity, which shows that there is a large impact on the overall apartment market locally
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Economics has two branches: microeconomics and macroeconomics. Microeconomics is the branch of economics that deals with the personal decisions of consumers and entrepreneurs. Its primary concern is to help consumers and investors make their lives better by increasing their earnings and satisfying their needs despite limited resources. Also included in its study are the consumers' decisions on what products to buy and how the cost of commodities is determined. Macroeconomics deals with the larger aspects
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Supply and Demand Concepts at Work: Goodlife Management Company Microeconomics and Macroeconomics at Work The two microeconomic concepts at work in the simulation were the law of demand and supply. According to the law of demand, more quantities of a product or service will be bought at lower prices than at higher. As the Goodlife Management Company lowered their rental rate, their vacancy rate decreased thus indicating there was an increase in demand as the prices were lowered. According to
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study of how people make choices to satisfy their wants. B) the study of individual self—interests. C) the study of how government can most efficiently raise funds by taxation. D) the process by which goods are sold in free markets. 2) Microeconomics is defined as that part of economic analysis which A) studies the behavior of the economy as a whole. B) includes the problems of inflation and unemployment. C) studies the individual decision making by households and firms. D) concerns international
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